Mirae Asset CEOs Apologize to Customers Over 'Zero Allocation' of SpaceX IPO Shares, Consider Financial Compensation

Mirae Asset Securities' co-CEOs, Vice Chairmen Kim Mi-sup and Hur Sun-ho, have issued an official apology and begun reviewing "financial compensation" following the incident where Korean investors received zero shares in the initial public offering (IPO) of SpaceX, which was expected to be the largest in history.

According to the financial investment industry, the two vice chairmen sent text messages to customers who participated in the SpaceX subscription yesterday (June 15), stating, "We bow our heads in apology for delivering such regrettable and heavy news to our customers who participated with great interest and expectations."

Kim and Hur stated, "Our company was included as an underwriter in the U.S. Securities and Exchange Commission (SEC) filing (S-1), and we proceeded with this subscription having met all the proper qualifications and requirements to provide IPO subscription shares to our domestic customers."

However, they explained, "Although we made our best efforts to secure the shares until the very end, a situation occurred where no shares were allocated due to the final decision made at the discretion of the lead U.S. underwriter."

The two vice chairmen added, "We are currently investigating the detailed circumstances regarding this decision, and we will promptly provide updates on additional findings and various measures to restore customer trust, including financial compensation."

Mirae Asset Securities, which participated as part of an underwriting syndicate alongside about 20 global investment banks (IBs), had initially expected to underwrite 2,314,815 shares of SpaceX Class A common stock.

However, Goldman Sachs, the lead underwriter for the SpaceX listing, completely cut the portion for Korean investors during the final allocation process conducted ahead of the listing on the 12th.

In response, Mirae Asset Securities has refunded all subscription deposits paid by domestic individual and corporate professional investors and institutional investors who participated in the SpaceX public offering subscription. It is reported that the firm also sent a letter to Goldman Sachs requesting an explanation for the "zero share allocation," but has yet to receive a response.

The Financial Supervisory Service (FSS) is currently conducting an inspection of Mirae Asset Securities regarding this incident.

It is understood that the FSS plans to examine the entire process leading up to the failure of the public offering allocation, with a focus on investor protection.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.